CPC - Since several dates have passed, Trial Court can be requested to hear two applications before summons in suit and notice in applications are served on Respondent: HC (See 'Legal Desk') IBC - Application filed u/s 9 of IBC can be admitted as debt due remains unpaid despite demand made: NCLT (See 'Legal Desk') Govt lifts export ban on Bamboo Charcoal (See 'Corp Brief') Notices issued to Ola and Uber for unfair trade practices (See 'Corp Brief') Agri-tech Start-ups critical to India's future economy: Minister (See 'Corp Brief') FM participates in Annual Day commemoration of CCI (See 'Corp Brief') Copyright Act, 1957 - Offence u/s 63 of Copyright Act is a cognizable and non-bailable offence: SC (See 'Legal Desk') IBC - To regain control of Corporate Debtor (MSME) Management/Promoters/Erstwhile Directors are not required to compete with other Resolution Applicants: NCLAT (See 'Legal Desk') GeM, SEWA ink MoU to enable engagement of last-mile women-led enterprises (See 'Corp Brief') NCLT Rules, 2016 - Adjudicating Authority has power in terms of Rule 49(2) to recall any ex-parte order if sufficient cause is shown: NCLAT (See 'Legal Desk') IBC - Land owner intending to share profits emanating from agreed venture, by way of MoU, is a Financial Creditor as defined u/s 5: NCLAT (See 'Legal Desk') CCI approves merger by absorption of Covidshield Technologies into Biocon Biologics (See 'Corp Brief') CCI okays acquisition of majority stake in SMW Ispat by OFB Tech (See 'Corp Brief') CCI nod to Sanoti Properties' shareholding in Magma HDI General Insurance (See 'Corp Brief') Proceedings under SARFAESI evaporate once CIRP is initiated under IBC: SC (See 'Legal Desk') Department of Posts inks partnership with GeM and CSC (See 'Corp Brief') Karnataka launches own MyGov - 17th State in India (See 'Corp Brief') Pradhan reviews progress made under NETF and NDEAR (See 'Corp Brief') SEBI Act - Mere non-supply of documents cannot be treated as non-cooperation by appellants: SAT (See 'Legal Desk')

CCI imposes penalty on maritime transport companies

Published: Jan 24, 2022

By TIOLCorplaws News Service

NEW DELHI, JAN 24, 2022: THE  Competition Commission of India ('CCI') passed a final order against four maritime transport companies namely Nippon Yusen Kabushiki Kaisha ('NYK Line'), Kawasaki Kisen Kaisha Ltd. ('K-Line'), Mitsui O.S.K. Lines Ltd. ('MOL') and Nissan Motor Car Carrier Company ('NMCC') for indulging in cartelisation in the provision of maritime motor vehicle transport services to automobile Original Equipment Manufacturers (OEMs) for various trade routes. Amongst these four companies, NYK Line, MOL and NMCC were lesser penalty applicants before CCI.  

The evaluation of available evidence revealed that there was an agreement between NYK Line, K-Line, MOL and NMCC with the objective of enforcement of “Respect Rule”, which implied avoiding competition with each other and protecting the business of incumbent carrier with the respective OEM. To achieve the said objective, the maritime transport companies resorted to multi-lateral as well as bilateral contacts/ meetings/ e-mails with each other to share commercially sensitive information which, inter alia, included freight rates. They also aimed to preserve their position in the market and maintain or increase prices, including by resisting requests for price reduction from certain OEMs. 

Accordingly, based on a cumulative assessment of the evidence, the Commission held all the four opposite parties, i.e., NYK Line, K-Line, MOL and NMCC, guilty of contravention of the provisions of Section 3 of the Competition Act, 2002 (the Act), which prohibits anti-competitive agreements including cartels, from 2009 to 2012. Further, 14 individuals of NYK Line, 10 individuals of K-Line, 6 individuals of MOL and 3 individuals of NMCC, were also held liable for the anti-competitive conduct of their respective companies, in terms of the provisions of Section 48 of the Act. 

As three companies filed lesser penalty applications, the Commission gave benefit of reduction in penalty by 100% to NYK Line and its individuals, 50% to MOL and its individuals and 30% to NMCC and its individuals. Accordingly, the Commission directed K-Line, MOL and NMCC to pay penalties to the tune of approx. INR 24.23 crores, INR 10.12 crores and INR 28.69 crores respectively, besides passing a cease-and-desist order.

TIOL CORP SEARCH

TIOL GROUP WEBSITES